Global fleet-conference presentation-v2

Operational leasing in TurkeyExtreme competition, stable growth.

İlkay ERSOY Chairman / TOKKDER & CEO / DRD Fleet Leasing

TURKEY a LARGE and

PROMISING COUNTRY

Gross National Product

Worlds 16’th & Europe’s 6’th Economy

Taiwan

Saudi Arabia

Iran

Australia

Turkey

Indonesia

Spain

Canada

Korea

Italy

Mexico

France

United Kingdom

Brazil

Russia

Germany

Japan

India

China

United States

Gross National Product – Purchasing Parity - World Bank / data.world.bank

BulgariaSlovak Republic

IrelandHungaryDenmarkPortugal

GreeceNorway

RomaniaCzech Republic

AustriaSwedenBelgium

NetherlandsPolandTurkey

SpainItaly

FranceUnited Kingdom

Germany

16’th

1.2 Trillion US Dollars

6’th

Sustained Growth

2002 2004 2007 2010 20130.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

0.5

0.7

0.91.0

1.2

GNP / Trillion USD

2002 2004 2007 2010 20130

20

40

60

80

100

120

140

160

36

63

107114

152

Export / Billions USD

World Bank / data.world.bank & Turkish Statistical Institute / www.turkstat.gov.tr

140% 322%

Turkey – Large Country

Turkey’s forest area is 120K sq km, which is;As large as Bulgaria, 1.5 times Czech Republic3.5 times Netherlands,

Total 780 K sq km land area is;The largest in Europe, 1.4 times France 2.2 times Germany.Edirne to Hakkari is 2.200 km

Number of cities more than 1M :

Large and equally crowded

22 with total 44M population

Number of cities more than 500K :

42 with total 60M population

Sixth economy,Largest land area,Biggest but youngest population,Dynamic and sustained growth,

Risky? Maybe yes, maybe no.Promising? Certainly

AUTOMOTIVE INDUSTRY

Passenger Car Per 1000 people & population

Italy

German

y

Belgium

Spain

France

Poland

Czech Rep

ublic

Bulgaria

Serbia

Romania

Turke

y0

100

200

300

400

500

600

700

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

605

531491 482 482

World Bank / data.world.bank

Italy

German

y

Belgium

Spain

France

Poland

Czech Rep

ublic

Bulgaria

Serbia

Romania

Turke

y0

100

200

300

400

500

600

700

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

605

531491 482 482 470

437

367

231203

110

Italy

German

y

Belgium

Spain

France

Poland

Czech Rep

ublic

Bulgaria

Serbia

Romania

Turke

y0

100

200

300

400

500

600

700

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

605

531491 482 482 470

437

367

231203

110

Car Sales (thousends)

2006 2007 2008 2009 2010 2011 2012 20130

100

200

300

400

500

600

700

800

900

1000

666634

527576

793

911

818

893

373 357306

370

510

594556

665

Total PassengerMonthly Automotive Report – Turkey Automotive Manufacturers Association / www.osd.org.tr

Taxation 1

• VAT 18% for resale and brand new car

• Special Consumption Tax on Car is function of CC, (SCT + VAT effect MSRP - TRY)

<1600 CC 100 X 1.45 X 1.18 = 171.11600-2000 CC 100 X 1.90 X 1.18 = 224.2>2000 CC 100 X 2.45 X 1.18 = 289.1

Taxation 2

• Motor Vehicle Tax is about life time of vehicle and is also function of cc (Yearly - TRY)

• Corporate income tax 20%,

<1300cc 5371301-1600 8591601-1800 1.5141801-2000 2.3852001-2500 3.5782501-3000 4.9873001-3500 7.5953501-4000 11.940

>4001 19.541

Sales Behavior of Automotive Industry

• Offers bulk sale and discount at the end of quarters, that is all

• Unstable discount policy in year,• Offers more discount rates for short term,• Does not mind early terminations and resale

market,• Lack of service quality to all kind of «fleet

customers»

OPERATIONAL LEASING INDUSTRY

Operational Leasing / Supliers

Member of TOKKDER (*)

Main Suppliers

(*) - Participants of TOKKDER Market Survey

+

Additional many

member and non

member / known and

unknown car renting

companies

ALDARKASARVALATAKO

AUTOLANDAVIS

BEYAZCENTRAL

DRD FLEETFLEET CORP

GARANTİ FLEETHEDEF

LEASEPLANPREMIUMTAN OTO

Operational Leasing / Basics

>10.000 65.000-10.000 1

<5.000 8Profile of Market Survey

Participants

Estimated number of cars in operational

leasing market

207.000

Share in Corporate Car Parc

12% - 15%

Market in 5 years > 500.000

Charactertics of Market

• Strong competition based on pricing

• Full service operational leasing, fleet management, S&L Back,

• Undefinite «product and service»

• Product is «car»• Car is passenger car• Strictly protective rules

on LCVs

• No regulation and no limit for market entry

• Always new entries to market

• Under strong FX risk• Intensive technology

investments• Large selection of

suppliers from multinationals to strong and extensive locals,

Operational Leasing / Growth

2010 2011 2012 20130

50,000

100,000

150,000

200,000

250,000

117,517

142,036

170,031

207,221

Number of Vehicles

2010 2011 2012 20130

5,000

10,000

15,000

20,000

25,000

30,000

9,675

11,990

17,285

26,189

Number of Customers

11,1

7,3

21%

20%

22%

76% 170%

TOKKDER - Turkish Auto Leasing and Car Rental Association / www.tokkder.org

Car Parc / Brands

RENAULT VW FORD FIAT OPEL CITROEN AUDI PEUGEOT BMW OTHER

25.9%

18.1%16.0%

12.4%

5.8% 4.9%3.4% 2.7% 2.2%

8.5%


Car Parc / Fuel and Transmission

DIESEL; 92.2%

GASOLINE; 7.6%OTHER; 0.2%

CAR PARC / FUEL TYPE

MANUAL; 70.3

%

AU-TOMATIC; 29.7

%

CAR PARC / TRANSMISSON


Car Parc / Segments

B C D E-F LCV

31.7%

49.2%

12.9%

3.1% 3.1%

Symbol, Fiesta etc

Focus, Corolla, Jetta etc


A4, 3.20, Passat, C5

etcA6, A8, 5.20,

Luxury SUVs etc

Car Parc / Contracts

<18 Months; 8.4%

18-30 Months

; 18.2

%30-42 Months

; 61.0

%

>43 Months; 12.4%

CAR PARC / CONTRACT MATURITY

EUR;

80.4%

USD; 5.2%

TRY;

14.4%

CAR PARC / CONTRACT FX


TIPS for

FLEET MANAGER

Who uses what? – Samples for Segments

CEO of Major Banks and multinational companies

VP of Major Banks multinational companies

Director, Coordinator and Executives

Managers, Regional Managers, Executives

Sales People

AUDI A8L, BMW 7 Series, Mercedes S Class

Fully equipped AUDI A6, BMW 525, Mercedes E Class

AUDI A4, BMW 3.20, C5, VW Passat, Mercedes C Class

AUDI A4, BMW 320, VW Jetta, Corolla, Focus,

Citroen C4, Fiat Liena, Citroen Elyse, Clio Symbol, VW Polo

Selected Positions Sample Make and Models

Wise Fleet Manager in Turkey....

• Segmented milage for fleet. Calculate it for segments and positions.• Turkey is large country, you do not need to have winter tires in most cities.

Try to estimate your winter tire needs. If you are wrong, it is always possible to buy with good discounts,

• Winter tires for higher segment cars are extreemly expensive, be careful.• Always question your supplier for service structure.

– Ask main service stations,– Ask call-center structure,– See sample fleet reports and ask online reporting, try– Ask damage management and insurance system, fix insurance or based on customer

claim ratio?– Ask to visit customer relations departments and some service stations, – Is there internet service base?– Is there IOS, Android, W8, BB based apps?

Wise Fleet Manager in Turkey....

• Do not focus just pricing, be sure supplier is understood the service package and capable to ensure it,

• Check and force multinational as well as locals, never be sure for your supplier’s service structure just because of «the name»,

• Check if they have a control and audit system on their third party suppliers,

• Check their ERP,• Ask fair wear and tear conditions,• Never forget Turkey is large country and your cars will be

thousends of kms far from you!,• If your milage projections results high milages have an

optimization team with finance and sales departments,

Car is an asset

• Saving is important,• And productivity is more important,• In the end car is an asset, an equipment which must

create value,• That value depends on your supplier,• Delivery of cars is not the end, it is the begining, • Force for KPIs to your supplier and understand if

«internal customer» is happy for your service,

– 80% of damages are under 500 USD,– Repair time is under 1 day! Supplier do not provide a courtesy

car under one day,

Association is also for customers

• As a wise fleet manager, never forget that TOKKDER is always ready to assist!!!

Note www.tokkder.org

http://www.tokkder.org/

THANK YOU

Global fleet-conference presentation-v2

Automotive

Transcript of Global fleet-conference presentation-v2